Leo Varadkar (Dublin West, Fine Gael) | Oireachtas source

The Cork Airport Development Council is non-statutory. It has been set up to work with the interests in the area to help us develop the plan for Cork of which the Senator spoke. Much of what needs to be done there is to increase the number of people visiting Cork. People do not go to a city to visit its airport, but pass through the airport to reach a city or region. We need more people to visit Cork. Unfortunately, it is largely an outbound airport, as the Senator mentioned, with people flying Ryanair or Wizz Air to eastern Europe or going to the Canaries. We need more people to visit the southern region through Cork. As the money from the sale of the Great Southern Hotels is long gone, unfortunately, that solution is not available and the net debt of the DAA is still approximately €600 million.

It is possible for a future Government to take the decision to separate Cork Airport and make it independent and the legislation provides a mechanism by which it could be done. However, it can be done only when it is right for Cork and the DAA. It is not right for the DAA now because it carries a debt of €200 million as a result of the new terminal. If this debt stayed with Cork Airport it would crush Cork while if it stayed with the DAA it would severely damage its balance sheet at a time when it needs to deal with pension issues. Over time, passengers using Dublin Airport will have to pay down the debt for the terminal. Unlike Shannon Airport, Cork Airport's operating costs substantially exceed its revenues. Were it separated now it would immediately be loss-making. To operate on a commercial basis it would require significant redundancies and-or pay cuts, which nobody is proposing. While it is not the right time, unfortunately, for Cork Airport to become independent, it could be done when the time is right, and this legislation allows a mechanism for it.